House Approves $78 Billion Tax Package to Expand Child Tax Credit and Business Incentives

House Passes $78 Billion Tax Package to Expand Child Tax Credit and Support Businesses

In a bipartisan effort, the U.S. House voted overwhelmingly to approve a $78 billion tax package known as the Tax Relief for American Families and Workers Act of 2024. The bill includes provisions to expand the child tax credit and reinstate tax incentives for businesses.

The 357-70 vote sends the bill to the U.S. Senate for further consideration, where lawmakers are expected to vote on it in the near future. The agreement between Missouri Republican Rep. Jason Smith and Oregon Democrat Finance Chairman Ron Wyden garnered support from both Democrats and Republicans during the House debate.

However, not all members were in favor of the bill. Some far-right lawmakers expressed concerns about the expansion of the child tax credit, while progressive Democrats argued that the bill did not go far enough to provide relief to low-income and working families.

The child tax credit expansion aims to support families affected by inflation and remove penalties for families with multiple children. Massachusetts Rep. Richard Neal highlighted that the expansion would immediately benefit 16 million children across the country.

Criticism of the bill came from both sides of the aisle, with some Republicans raising concerns about undocumented immigrants receiving child tax credit payments. However, supporters of the bill emphasized the importance of investing in American families and businesses to remain competitive on a global scale.

If passed by Congress, President Joe Biden is likely to sign the bill into law. The White House has expressed support for the legislation, calling it a “welcome step forward.”

The bill includes provisions to enhance the child tax credit over the next few years and provide tax incentives for businesses, such as deductions for research and development investments. It also aims to make housing more affordable and help communities recover from natural disasters.

Senate Majority Leader Chuck Schumer and Senate Finance Chairman Ron Wyden have expressed support for the bill and are working to determine the next steps for its consideration in the Senate. While some senators have raised concerns about the bill’s scope and pay-for provisions, others are hopeful that amendments can be made to improve the legislation.

Overall, the tax package seeks to provide much-needed support to American families and businesses, with a focus on addressing key economic challenges and promoting competitiveness in the global market.